Please note this is only one aspect in weighing the attractiveness or non-attractiveness of the company mentioned as an investment and should not be used independently of other factors. This article examines one segment of the company's businesses. It is not a recommendation to buy or sell any stocks mentioned.
Investment Thesis
(Source - MarketWatch)
After increasing revenue guidance for FY17 as a result of Spinraza performing better than expected, it is perhaps an appropriate time to reflect on 2Q17 and estimate for the earnings call. As investors, we are pleased to see that beyond its strong multiple sclerosis pipelines, there is a continued effort to increase product diversification to areas such as Alzheimer's. Similar to Bristol-Myers Squibb (NYSE: BMY), the company in question, Biogen (NASDAQ: BIIB), has also underperformed the industry year-to-date. One may also draw the conclusion that we may have yet another opportunity to buy a so-called "cheap" stock, but perhaps a PEG ratio of 1.75 may change your mind. The industry is unloved due to intrinsic market volatility and most risk-averse people would rather pick up a blue-chip stock. The bonus here is that this often generates amazing investment in underappreciated stocks.
